Remarks of U.S. Senator Daniel K. Akaka

        Mahalo for that introduction, Assistant Secretary Nason.  Aloha.  I am delighted to be here today.  The members of the Financial Literacy and Education Commission and other friends here share my commitment to helping improve the lives of all Americans through financial literacy.  Without a sufficient understanding of economics and personal finance, individuals will not be able to appropriately manage their finances, effectively evaluate credit opportunities, successfully invest for long-term financial goals in an increasingly complex marketplace, or be able to cope with difficult financial situations. Unfortunately, today too many working families are struggling as they are confronted with increases in energy and food costs or the loss of a job.

        It is essential that we work toward improving education, consumer protections, and empowering individuals and families through economic and financial literacy in order to build stronger families, businesses, and communities.  Since its inception I have wanted to see this Commission improve the financial literacy of all Americans.

        I greatly appreciate the efforts of everyone here.  However, we must work toward making the Commission more effective in fulfilling its mission of improving the financial literacy of our citizens.  The Commission must make additional progress to respond to the Government Accountability Office's recommendations to make the National Strategy more effective by adding elements beyond its "calls to action" to help measure results and ensure accountability. 

       The GAO also indicated that effective national strategies should include discussions of cost, the sources and types of resources needed, and where those resources should be targeted.  Though the study was released in December 2006, action still must be taken to address these concerns.  I encourage all of you to review the GAO's analysis, which was updated for a hearing I conducted in April 2007.

        At that hearing, Steve Brobeck from the Consumer Federation of America outlined several strategies to achieve significant and measurable improvements in specific financial decisions made by most Americans.  Examples included encouraging self-measurement of net personal wealth, use of automatic savings opportunities, periodic checking of credit records, and on-time repayment of loans.  

        He also recommended that the Commission develop an online tool that could be widely promoted as an annual financial checkup instrument.  These are very interesting recommendations that could lead to the development of concrete proposals that will result in positive behavioral change among consumers.

        Although the President's Financial Literacy Council has the potential to be a useful organization, I am concerned that it will take resources away from the Commission and hinder the ability of the Commission to fulfill its mission.  The creation of this Council makes it even more important that the Commission make changes to ensure that it can be effective and remain relevant.

        The Commission must establish clear goals and performance measures and discuss what resources are essential to fulfilling its mission.  I expect to have another hearing examining the Commission's activities in either the Senate Banking Committee or the Homeland Security and Governmental Affairs Committee.  I am hopeful that progress will be reported back to me by then.

        We must continue to work together to encourage better economic and financial literacy, which, in turn, will result in stronger families, better-functioning markets, and a more secure future for our nation. This issue is so important because it has the potential to improve the lives of so many people.

        I look forward to continuing to work with all of you to ensure that the Commission is effective, so that the financial literacy of our country improves.  Mahalo for inviting me today.

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